[Sandman]

Further Ideas:

More scale magic resistance dependencies: As well as the magic scale, you could also have order/turmoil affecting demon MR (higher MR in turbulent provinces), and the growth/death scales affecting undead MR (apart from vine undead).

More emphasis on leadership: Non-mage commanders don't really have much effect on the battle. What if there were a variety of different leadership traits which gave bonuses to commanded troops? Examples:

Armorer: All commanded units get +1 protection.
Sharpshooter: All commanded units get +1 precision.
Tactics: All commandered units get +1 AP.
Random: A random leadership trait.

Leadership traits, would, in fact, be similar to magic paths. You could even have booster items.